The ratings on Oberösterreichische Landesbank AG's (Hypo OÖ) senior unsecured unguaranteed obligations benefit from three notches of implicit ownership support from the State of Upper Austria (AAA/Stable/A-1+) due to the latter's 51% ownership. Hypo OÖ is a "government-related entity" (GRE), qualifying for the category of commercial institutions. The ratings on Hypo OÖ also reflect the cooperation on selected areas with its strategic partner, Raiffeisenlandesbank Oberösterreich (RLB OÖ; not rated), its sound stand-alone risk profile, and its sound market share in state-related banking services. Primary factors constraining the ratings are low profitability and earnings diversification, due to the bank's profile as a small regional bank as well as its narrow business focus. Hypo OÖ's market position outside its state-housing promotion business
